No.

First off, I am not so sure the forensic report is correct in regard to the ability of the GM to hire people. That is part of the GM's job. Also, the forensic report author says he was "told" the GM did not have the authority.

I think whoever told the auditor that was incorrect:

From the bylaws:

(b) The General Manager serves as the chief personnel officer of the Association with discretion to appoint, promote, demote, discipline, or discharge employees of the Association in accordance with the personnel policies and procedures established by the Board of Directors under Section 5.14(d). Any new position established must be approved by the Board or provided for in the annual budget.

Sounds like rather broad authority to hire and fire. Note especially the line that says the board has to vote on a new position. The position was NOT a new position.